Mortgages for First-time buyers
Getting onto the first step of the property ladder is important to many of us.
By the time you’re reading this your finances should be in order and you’ll have a deposit ready.
How much deposit do I need to buy a house – first time buyer?
Typically speaking you’ll need a deposit of around 5% of the property value to get a mortgage. If you can save more than this it opens up your options to a wider range of mortgage products.
The mortgage lender will then lend you the balance of 95% which you will repay over a 20 to 30 year term.
If you are looking at a new property then the government’s help to buy scheme can subsidise your deposit and make your deposit go further. Find out more about help to buy here.
Who is eligible for a first time buyer mortgage?
To be eligible for a first time buyer mortgage this needs to be the first time you have bought a property
First time buyer mortgage Frequently Asked Questions
There are a number of schemes available depending on your circumstances, you can use the help to buy scheme for a new home, right to buy and shared ownership schemes are available for certain customers and you should be able to benefit from a reduction in Stamp Duty (in England and Wales)
Most lenders expect you to have accounts or tax returns for two years, if that’s not possible there are some lenders who will accept alternate proof of income. Contact us and explain your situation and our human advisors will work with you to find your best option. You can read more about mortgages for the self employed here.
Most lenders will cap the lending at around 95% of the property value but for the right application this can be extended to 100%. again contact our advisors and explain your situation and we’ll help you get the best mortgage to meet your needs.
With house prices getting further out of reach for many young buyers, especially in the property hotspots of the major cities it’s becoming increasingly attractive to buy in a less expensive area to get “on the ladder”. Whilst some lenders need you to have your own property before you start investing, there are lenders on our panel who will provide a mortgage to a first time buyer.
Find out more about buy to let mortgages here.